Bitcoin is a volatile asset, but BTC price can stay flat for days, weeks and even months for various reasons.
Market Analysis
The price of Bitcoin (BTC) has remained fairly stable for several days in a row. With BTC price volatility subsiding, cryptocurrency markets are digesting the SEC’s lawsuits against Binance and Coinbase.
So why is Bitcoin’s price stuck and what will be the next catalyst for a big move? Let’s take a closer look.
Why is Bitcoin price stuck?
BTC price dropped 1.5% week-to-date to around $26,690 despite several knee-jerk price moves in reaction to the U.S. Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase.
Related: Breaking: Binance.US suspends USD deposits, warns of fiat withdrawal pause
The EMA range
In recent months, certain technical barriers have played a key role in subduing both bulls and bears.
For instance, a strong accumulation sentiment is visible near Bitcoin’s 200-day exponential moving average (20-day EMA; the blue wave) at around $25,270. This helped contain the selloff that ensued from the SEC lawsuits earlier this week.
On the other hand, the 50-day EMA (the red wave) near $27,220 has served as a profit-taking indicator, thus leaving the Bitcoin price inside the purpled $25,000-27,220 consolidation range despite occasional breakout attempts.
Bitcoin bears are cautious ahead of Fed meet
Interestingly, Bitcoin 30-day volatility around the SEC lawsuits is roughly half of what was during the banking crisis rally in March 2023.
This suggests a cautious approach by bears, primarily ahead of the Federal Reserve’s potential rate hike pause decision on June 16 — a potentially bullish event for Bitcoin. In the meantime, BTC price may continue consolidating inside the $26,000-27,450 range.
Related: Bitcoin price can gain 60% if ‘textbook’ chart pattern confirms — Trader
Will BTC price rise further in 2023?
Bitcoin’s long-term bias tilts bullish as long as it holds its 200-week EMA (the blue wave in the chart below) as support. Its bull flag scenario also indicates a potential breakout toward $35,000 in 2023.
Conversely, a decisive breakdown below the flag and the 200-week EMA will have Bitcoin bears calling for a drop to the key $20,000 support level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.